To curb the escalating housing costs in popular areas, the government of Asturias, Spain, has officially enacted and implemented new regulations for the rental market. The core of this legislation is the designation of ‘stressed residential market zones’ (zonas de mercado residencial tensionado), where it intervenes in key aspects such as rent levels and contract renewals to regulate the rental market.
Scope and Duration
According to the official announcement, the new regulation took effect on July 30, 2026, and will be valid for three years, until July 2029. A total of 12 stressed housing zones have been designated, distributed across five main municipalities:
- Gijón
- Oviedo
- Avilés
- Siero
- Langreo
It is important to note that the control does not cover the entire geographical area of these five municipalities but is precisely focused on the core areas with significant housing supply-demand imbalances and the greatest pressure from rising rents. This includes the La Magdalena district in Avilés, the La Arena and Cimadevilla districts in Gijón, and parts of the core areas of the towns of Luanco, Arenas, Poo de Cabrales, and Llanes. The regional government has stated that it will evaluate whether to expand the scope of control based on feedback from public hearings.
Specific Provisions for Rent Caps
The new law does not impose a ‘one-size-fits-all’ maximum price but sets different rent cap standards based on the property’s specific situation:
- For properties rented within the last 5 years: The initial rent for a new contract generally cannot exceed the rent of the previous contract at its expiration. A maximum increase of 10% is only permitted under specific conditions, such as extensive renovations, significant improvements in energy efficiency, enhanced accessibility, or signing a long-term contract of ten years or more with the tenant.
- For ‘large-scale landlords’ or properties not rented in the last 5 years: If a landlord owns more than 10 residential properties (or a total area exceeding 1,500 square meters), or if the property has not been on the rental market in the past five years, the rent must be set in reference to the maximum rent standard published by the National Housing Price Reference System (SERPAVI).
Ensuring Tenant Stability and Incentivizing Landlords
While capping rents, the new regulation also considers tenant stability and landlords’ legitimate income.
On one hand, the law strengthens tenant protection. After the legal expiration of a rental contract, tenants who meet certain criteria have the right to request a special annual contract extension from the landlord, for up to three years. During this special extension period, all terms of the original contract remain unchanged, and the landlord cannot unilaterally raise the rent or terminate the lease early.
On the other hand, to encourage landlord compliance, the regulation introduces generous tax incentives. For landlords in stressed housing zones who voluntarily reduce the rent by at least 5% compared to the previous contract when signing a new lease, they can receive a personal income tax deduction of up to 90% of their net rental income. There are also other deduction tiers available, such as 70%, 60%, and 50%, depending on the specific circumstances.
Official Guidelines and Market Information
To help all parties better understand and comply with the new rules, the government of Asturias has also published a practical rental guide that answers common questions through case studies. The guide reminds all parties involved in a lease to verify four key pieces of information before signing a contract:
- Property Location: Confirm if the property is located within one of the 12 designated stressed housing zones.
- Rental History: Find out the rent level of the property’s previous lease contract.
- Landlord Type: Determine if the landlord is classified as a ‘large-scale landlord’ subject to stricter regulations.
- Price Reference: Ascertain if it is necessary to adhere to the maximum rent standard set by SERPAVI.
This three-year policy is expected to have a profound impact on the rental market in Asturias, and its ultimate effectiveness remains to be seen.
